Ethiopia | What is the preferred Tax Method to use?
The following tax methods
are available in Ethiopia:
- Average Tax Method (Year to Date)
- Non-Cumulative Tax Method (Month to Date)
The preferred tax method for Ethiopia is
Non-Cumulative Tax Method.
When creating a new company the tax method defaults to Average Tax Method.
This can be changed to Non-Cumulative Tax Method under the Company Basic Profile Screen.
- Config > Basic Settings > Company Settings > Basic Company Information > General
Companies can present their
case regarding their need for a different tax and accounting period to the tax
office and can apply this requested year after obtaining the office’s approval.
Due to the preferred tax method being Non-Cumulative, the Month to Month Take-On method is preferred.
*Not available on Lite Version*
Related Articles
Mali | What is the preferred Tax Method?
There are two Tax Methods used in Mali: Average Tax Method Non - Cumulative Tax Method The monthly Non-Cumulative tax calculation with regularisation at year-end or termination is the preferred method in Mali. A month-to-month take-on would be ...Egypt | What is the preferred Tax Method?
There are two Tax Methods used in Egypt: Average Tax Method Non - Cumulative Tax Method The monthly Average tax method using the annual tax tables is the preferred tax method which uses the maximum number of days in a month of 30. A year to date ...Benin | What is the preferred Tax Method?
There are two Tax Methods used in Benin: Average Tax Method Non - Cumulative Tax Method The monthly Non-Cumulative tax calculation is the preferred method in Benin. A month-to-month take-on would be suggested, due to the Non-Cumulative Tax Method ...Why is the Tax Adjustment component not included in the tax calculation for the current period?
This feature is available on all PaySpace editions. By system design, the system will use the Averaging Tax Method to calculate the Tax Paid component for the month. If the user decides to adjust the tax using the Tax Adjustment component, the system ...Ethiopia | Which tax status should be used when an employee has been issued with a tax exemption certificate from an Ethiopian tax office?
Make use of tax status: Foreign Employment (DTA) when an employee has been issued with a tax exemption certificate from an Ethiopian tax office Note! This tax status is exempt from tax and social security. Navigate > Employee > Basic Information > ...